We’ve been anxiously awaiting Richard Kelly’s follow-up to Donnie Darko for a while now. An early cut of the movie premiered at Cannes 2006 to negative reviews, and not much has been heard from the film since. Kelly posted an update on his MySpace blog, claiming that they are still waiting for money to finish the visual effects.

Kelly says that a release date has not been scheduled, a soundtrack deal is on the way, casting has begun for The Box, and announces that he’s been hired to write a action movie for a big director (current speculation points to a Vanishing Point remake). Check out Kelly’s blog posting below:

Hello all,

I have been inundated with requests about the trailer for Southland Tales… and I am sorry to say that it does not yet exist:( Sorry everyone… but I promise we are getting closer!

We are still in the process of getting the budget approved to finish all of the additional visual effects in the final cut. There were many missing and incomplete visual effects in the Cannes version, so expect lots of improvements! Fingers crossed that we get the additional money…

Release date has not been decided upon, as the distribution plans are still in the works.

We are in advanced negotiations for a soundtrack deal for Southland Tales, but until there is a locked release date… we won’t know for sure.

The graphic novels are done… so I hope everyone is checking out The Prequel Saga. I really believe that the people who read the books will enjoy the film a lot more on their first viewing.

Casting is still underway on The Box… but we will not start filming until later this year… as there is still work to be done in the Southland.

In the meantime… I have been hired by Fox to write a big action film for [FAMOUS DIRECTOR]. It is a remake of a film released in 1971…

I’ve already started writing… and will have it finished in the next 9-10 weeks… right about the time I hope to have this whole Southland Tales thing out of my system… once and for all… for the love of God… if he is not dead, per The New York Times.